Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst

• Our NAV valuation suggests implied market cap of 1 trillion won or NAV per share of 15,983 won which is 11% higher than current price.

• Orion Holdings has attractive dividend yields and payouts. The company's dividend yield increased from 4.1% in 2021 to 4.6% in 2022 and 5.1% in 2023.

• The recent phenomenal performance of the movie Exhuma has resulted in a long-awaited revived positive sentiment on Showbox (which is 57.5% owned by Orion Holdings).

Updated NAV Valuation of Orion Holdings

Our NAV valuation suggests implied market cap of 1 trillion won or NAV per share of 15,983 won which is 11% higher than current price. The largest portion of the NAV analysis is Orion Holdings' 37.4% stake in Orion Corp (1.4 trillion won), which is 159% higher than Orion Holdings' current market cap.

• Orion Holdings' 57.5% stake in Showbox is worth 130 billion won.

• To value other investments of Orion Holdings, we used their book value at the end of 2023.

• To value 'Orion Holdings' core value (other than investments), we applied a 5x multiple on the company's non-consolidated operating income in 2023.

• Net debt was 115 billion won at the end of 2023 (non-consolidated).

• We also applied a holding company discount of 40% to value Orion Holdings.